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Techno Corp. has 2 divisions, Apple and Baker. Baker makes a product that could be used by Apple in its production. Apple is currently paying
Techno Corp. has 2 divisions, Apple and Baker. Baker makes a product that could be used by Apple in its production. Apple is currently paying $75 to an outside supplier for the item. Baker sells its product for $90. Its cost to produce include variable product costs of $65 and fixed costs of $8 per unit based on capacity. Baker could produce 30,000 units and is currently selling 20,000 units. Apple needs to purchase 5,000 units.
What is the maximum price that Apple will pay for the part.
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